The governing body of the AragonOS DAO-creation will now close its operations. The tool will transfer a major chunk of its assets to the token holders of the Aragon platform.
- Aragon Association dissolves and plans to distribute tokens among users.
- The platform will exchange 1 ANT token for 0.0025376 ETH.
- AA was plagued with several complications, including legal barriers and failed attempts to modify governance.
As per the official blog post, the team behind one of the oldest projects in the crypto space has opted for a reset. The Aragon Association will distribute a total of 86,343 ETH tokens from its treasury to ANT token holders. It amounts to approximately $155 million at the current price of Ethereum in the market.
Further details suggest that the funds will be distributed through a smart contract on the Ethereum network. Through the process, each ANT holder will receive 0.0025376 ETH per ANT token sent into the redemption contract. This is $4.57 at ETH’s current market price.
The redemption window is also open for a year, as the platform plans to let go of 87% of non-assets of the treasury. After the completion of all tokens, the protocol will burn ANT to help in the contract and dissolve itself. As per the blog, users will not be able to utilize ANT tokens after this point.
Moroever, around $1 million from the treasury will be given to the Aragon Shield Foundation for dealing with outstanding financial obligations and managing regulatory compliance. The Aragon project will have a product council to allocate resources and make up a business entity to carry on with the development.
The team wrote,
“For builders and developers, this changes nothing. The Aragon Project will continue its mission by doubling down on building resilient onchain governance tooling and infrastructure.”
New Beginnings For the Aragon Team After Multiple Challenges
As per the company, the decision to dissolve the entity was made privately by the team amid legal complications. The platform was facing certain problems like misaligned stakeholders and failure to modify the governance mechanism within the project.
The blog said,
“The current Aragon OSx team had no decision-making power in the AA’s decision. We’re relieved the governance tensions that were out of our control are being resolved. We’re committed to continuing Aragon’s mission by building a resilient DAO framework.”
The organization tried to find and try out multiple solutions to its problems but it was unable to succeed. Moreover, it tried to transfer the control of the treasury directly to ANT holders but several factors did not let it happen. Thus, dissolving the association was the final resort for the platform.
As per the team,
“Too few ANT was in the hands of users, partners, and builders after years of product pivots, and a volatile gap existed between the value of the treasury and the token market cap.”
In the recent past, the Aragon Association was criticized for taking a step back on its plan of giving voting rights to the community. A crypto hedge fund, Arca, accused the platform of not empowering its community and also banned users from its Discord channels. Later, many DAO members threatened to sue AA for a breach of contract.
In response to the official news of unwinding, the ANT token lost 6% in the crypto market. The price of the token dropped to around $4.60. Therefore, the decision seems to have a strong impact on the token’s community and user base.